How To Survive In A Plastic World, Qualifying For Credit Card.Written by Www.creditandyou.com
Let’s face it, having credit is no longer a choice. “Don’t leave home without it” is more like “can’t buy a home without it.” Your credit now determines neighborhood you live in, kind of car you drive and, sometimes, even whether or not you get a particular job. Credit cards are great financial tools and convenience they provide is beyond question They are easier to carry than cash and offer valuable consumer protection under federal law. Establishing A Good Credit History Suppose you haven’t financed a car loan, a computer or some other major purchase. How do you begin to establish credit? First, consider applying for a credit card issued by a local store and use it responsibly. Ask if they report to a credit bureau, most major department stores do. If they do and if you pay your bills on time you’ll establish a good credit history. Second, consider a secured credit card. A secured credit card requires that you open and maintain a bank account or other asset account at a financial institution as security for your line of credit. Your line of credit will be a percentage of your deposit, typically from 50 to 100 percent. Credit card application and processing fees are not uncommon for secured credit cards. In addition, secured credit cards usually carry higher interest rates than traditional no secured credit cards. What To Do When You Are Denied A Credit Card If you’re turned down for a credit card, it is important that you ask why. It may be that you haven’t been at our current address or job long enough, or that your income doesn’t meet issuer’s criteria. As you’ll discover, different credit cards companies have different standards. But, if you are turned down by several companies, that may indicate that you are not ready for a credit card. On other hand, if you’ve been denied a credit card because of information supplied by a credit bureau, federal law requires creditor to give you name, address and telephone number of bureau that supplied information. If you contact that credit bureau within 60 days of receiving denial, you are entitled to a free copy of your report.
| | How To Start Investing For Financial Independence, Part 1.Written by Chris Anderson, PhD
Today, I am going to start a multi-part series about how to go from being a beginning investor to being “financially independent” in a steady and predictable way. At our website, we get tons of e-mails about how do I start, how do I start with little $’s, etc., etc., etc. If you are asking this question, congratulations because you are ahead of most. All of us have been there at some point. I must warn you…. What I am about to share here for free is what “gurus” across nation charge thousands of dollars for in weekend seminars. The “secrets” revealed are going to seem pretty simple because quite frankly, there are no secrets. The methods used here have been done for centuries and there is no real reason to complicate them. Let’s apply these principles to see how fast someone might become financially independent without betting farm. Realize that everybody has wildly different starting points and different financial goals. For this series of articles, we assume that an individual has access to at least $15,000 liquid capital (or home equity) to start, is at least breaking even with their current income versus expenses, and has decent credit to obtain financing. Note there yet?.... See footnote below. To start, what you need is to make your money grow while keeping your current income stream, and current expense level in place. I can’t say this more plainly…..To change your current financial path, you have to us your money and your time to grow additional income streams that increase wealth. There is many ways to do this but we are going to use investing in real estate as an example. Now for beginners, here is really bad news…… As an investor, you reap rewards by putting your money in HARMS WAY. You do everything in your power to minimize your risk but bottom line is that real investors make money by taking CONTROLLED risks. As investors get better, they learn how to make fantastic investment returns doing things that all their friends and relatives thing is crazy….. However, they know exactly what risks they are taking are why those risks are small in comparison to potential rewards. One reason people really like real estate investing is leverage; i.e, you can purchase an expensive property using 0-20% of your own money while financing rest. So if you put 10% down for example, and then property goes up by 20%, you have made a 200% return (ignoring expenses, taxes, etc. for simplicity). Of course this works in reverse… If property drops by 20%, you have lost not only your original investment but have to come up with another 10% as well….. Ouch! For someone beginning, here is what I would suggest: 1) Look for an opportunity that will return at least 150% in 2 yrs or less; 2) Be mentally and financially prepared if investment does not work out; 3) Have VERY good reasons why you don’t think you will lose money…… You may not make as much as expected but you would rather not lose money at this stage. 4) Be patient. This single result should not either make or break you but it is crucial to a longer term plan. In our Mastermind Group, we are bringing out a land project (see related article Land Investing that appears to meet these criterion (each investor has to decide for themselves). So let’s say purchase price is $150,000, with 10% down and another $3,500 in closing costs. With good credit, then financing obtained would make land payments for 2 years while waiting for growth.
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